Since 1992, Eagle Plains Resources (EPL:TSX-V) has been aggressively acquiring and developing early stage mineral exploration projects in Western Canada. To develop these projects, we have assembled an expert in-house technical team of geologists, technicians and geographic information system specialists. Seasonally we also contract geologists specializing in specific types of mineralization to assist with our field programs. The company currently controls over 35 gold, silver, uranium and base-metal and rare earth mineral projects.
With over 35 projects, EPL is considered a project generator and invites joint venture participation to expedite project development. The joint venture model reduces shareholder exposure to the risk of exploration while enhancing exposure to a discovery directly on Eagle Plains projects and indirectly through it's portfolio of shares of other companies. With our in-house staff we are able to technically assist our joint venture partners..
Below is a chart depicting annual exploration expenditures on Eagle Plains projects by Eagle Plains, it's Option Partners and Teck during the Strategic Alliance. Finally, the 3rd party operations amount is the value of work that our subsidiary company that employs our technical team, Terralogic Exploration Inc., has conducted for third parties, this creates revenue for Eagle Plains.
Creating Shareholder Value
To create shareholder value when a discovery is made or a project is developed beyond the grass roots level, EPL may elect to spin-off the project into a new corporate entity. This spotlights the value of the more advanced project, creates value with new shares to the shareholder and makes it available for acquisition by a producing company.
Eagle Plains first spin-off was Copper Canyon Resources in June 2006 on a one-for-one share basis. Copper Canyon Resources was in turn purchased by NovaGold Resources in early 2011, As a result of the purchase, several exploration projects were again spun-off from Copper Canyon Resources into a new corporation called Omineca Mining and Metals. This spin-off was conducted through a "Plan of Arrangement" and resulted in a one-for-four share distribution.
The most recent Eagle Plains spin-off is the Yellowjacket Resources which was created by way of "Plan of Arrangement" resulting a one-for-three share distribution to Eagle Plains Shareholders.
In brief, the business model that Eagle Plains Resources follows is:
1. Acquisition of highly prospective grass roots and semi developed mineral exploration projects.
2. Develop these projects using joint-venture participation
3. Spin-off developed projects to create value for shareholders which also simplifies the project for the market place and makes it accessible to producing companies.
Below is a graphic example of the value that Eagle Plains Resources has created since 2005 including the spin-off of Copper Canyon Resources and it's resulting sale as well as Yellowjacket Resources.
Yellowjacket Gold Project
In late 2008 Eagle Plains was in a good financial position with approximately $6 million in cash and investments. Management, being committed to the concept that crisis creates opportunity, prospected for an opportunity that would fufill the following mandate:
||Create shareholder value
||Be a bargain
||Keep the Eagle Plains team employed and intact
||Minimize future share dilution
With this in mind, management networked and found an opportunity through a collegue that had been working at a gold mining project 9km east of Atlin, BC. called the Yellowjacket. The company operating the project, Prize Mining Corp. had ran into finacial difficulties just as it had capitalized a mining operation and was in the midst of preparing an NI43-101 gold resource for further financing.
For more information about this project and Eagle Plains' involvement, please navigate to the Yellowjacket Resources Website
For more information, click here to view Eagle Plains Resources Online Brochure
Updated February 20, 2013